house democrats analysis of fy 2011-12 corbett budget

8/7/2019 House Democrats Analysis of FY 2011-12 Corbett Budget

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2011/12GovernorsExecutiveBudgetAnAnalysisofGovernorCorbettsBudgetProposal

March22,2011


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TableofContents

Summary........................................................................................................................................................ i

The

Commonwealth

Operating

Budget

........................................................................................................

1

GeneralFund................................................................................................................................................. 3

Deposits.................................................................................................................................................... 6

OutlookforTaxandNonTaxRevenue................................................................................................. 6

FundingModifications.......................................................................................................................... 7

Expenditures............................................................................................................................................. 9

PensionContributions......................................................................................................................... 12

PennsylvaniaEmployeeBenefitsTrustFund...................................................................................... 14

CommonwealthDebt.......................................................................................................................... 14

Agriculture.......................................................................................................................................... 14

BoardofProbationandParole........................................................................................................... 15

CommunityandEconomicDevelopment........................................................................................... 16

ConservationandNaturalResources.................................................................................................. 19

Corrections.......................................................................................................................................... 19

Education............................................................................................................................................ 20

PreKthrough12Education............................................................................................................ 20

HigherEducation............................................................................................................................. 24

EmergencyManagementAgency....................................................................................................... 25

EnvironmentalProtection................................................................................................................... 25

ExecutiveOffices................................................................................................................................. 26

PennsylvaniaCommissiononCrimeandDelinquency................................................................... 26

JuvenileCourtJudgesCommission................................................................................................. 27

FishandBoatCommission.................................................................................................................. 27

GeneralAssembly............................................................................................................................... 27

GeneralServices.................................................................................................................................. 27

Health.................................................................................................................................................. 28

HousingFinanceAgency..................................................................................................................... 29

InfrastructureInvestmentAuthority(PENNVEST).............................................................................. 29


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HouseAppropriationsCommittee(D) March22,2011

Analysis 2011/12Gov.sExecutiveBudgetProposal

TableofContents(continued)

Insurance............................................................................................................................................. 29

Judiciary.............................................................................................................................................. 29

LaborandIndustry.............................................................................................................................. 30

PublicWelfare..................................................................................................................................... 31

MedicalAssistance.......................................................................................................................... 32

DisabilityPrograms......................................................................................................................... 36

IncomeMaintenance...................................................................................................................... 38

OtherHumanServices.................................................................................................................... 38

ChildDevelopment......................................................................................................................... 39

MilitaryandVeteransAffairs............................................................................................................. 40

State.................................................................................................................................................... 40

StatePolice......................................................................................................................................... 40

Transportation.................................................................................................................................... 41

Treasury.............................................................................................................................................. 41

MotorLicenseFund.................................................................................................................................... 41

Highways&Bridges................................................................................................................................ 42

LotteryFund:ProgramsforSeniorCitizens................................................................................................ 42

TobaccoSettlementFund........................................................................................................................... 44

PropertyTaxReliefFund............................................................................................................................. 46

PublicTransportationTrustFund&PublicTransportationAssistanceFund............................................. 47

MassandCommunityTransit................................................................................................................. 47

ATTACHMENTAStateGeneralFundBudgetComparison.......................................................................... I

ATTACHMENTBStateGeneralFundandFederalARRAFunds................................................................ III

ATTACHMENTCRankedAgencySubtotalComparisontoPriorYear....................................................... IV

ATTACHMENTDMotorLicenseFundOverview....................................................................................... VI

ATTACHMENTEPennDOTMotorLicenseFundExpenditures................................................................ VII

ATTACHMENTFTransitandRail............................................................................................................. VIII


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Summary

On

March

8,

2011,

Governor

Tom

Corbett

presented

his

2011/12

budget

proposal

to

the

General

Assembly. The Governors 2011/12 Executive Budget represents a total Commonwealth operating

budgetof$63.6billioninstate(General,SpecialandOtherfunds)andfederalfunds.Thisrepresentsa

decreaseof$3.3billion(4.9%)comparedtothe2010/11budgetof$66.8billion.AftertheGovernors

proposedcuts tothe2010/11budget totaling$369million inGeneralandSpecialFunds,his2011/12

budgetproposalreducestotalspendingby$2.9billion(4.3percent).

The Governors 2011/12 Executive Budget proposes $27.331 billion in General Fund state

expenditures.Incomparison,the2010/11enactedbudgetincluded$28.035billionintotalexpenditures

fromstateandfederaloffsetfunds,adeclineof$866million. TheGovernorproposesmovingTobacco

Settlement Funds and related appropriations to the General Fund for 2011/12. If these shifted

appropriations are removed, spending actually declines by $1.2 billion dollars. This provides a moreaccurateanddirectcomparisonwiththecurrentyear.

Gov.CorbettproposessignificantlyreducingoreliminatingmanyappropriationsintheGeneralFund.

In addition, he proposes numerous cost containment measures in the Department of Public Welfare

(DPW).Intotalthesecutsequal$2.6billion.Also,inadditiontofundingcuts,Gov.Corbettsproposal

includesmajorbudget,programandpolicychangeswithintheDepartmentsofEducationandPublic

Welfare.

Gov. Corbetts budget proposes significant cuts to General Fund programs, eliminates 103 line

item appropriations, eliminates over 1,500 state jobs, and consolidates 55 appropriations

throughoutsixagencies.

Gov.Corbettsproposalalso includesa $540.1 million increase in fund modifications to the General

Fund.Note90percent($479million)ofthesefundmodificationsaretheresultoftheproposedtransfer

ofTobaccoSettlementFundstotheGeneralFund.

Whilestatespending isreducedandstatetaxesdonot increase,Gov. Corbetts proposal will impact

the checkbooks of Pennsylvanians by directly shifting costs to citizens and local entities (such as

countiesandschooldistricts).AspolicymakersconsiderCorbettsproposal,theymustcarefullyexamine

theimpactitwillhaveontheirconstituents,includinglocaltaxincreases.

The Governors proposal only increases funding in a handful of agencies largely reflecting the

replacement of federal offset funds, necessary inflationary increases, and legally mandated

requirements.

Fordetailbyappropriation,pleasereferenceourspreadsheetdocumentGovernor'sProposed201112

Budget:StateandFederalAppropriations(GeneralFund) March11,2011,availableonourwebsite

(www.hacd.net). Fordetailbydepartmentsubtotal,pleasereferenceAttachmentsAandC.

i
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TheCommonwealthOperatingBudget

The

Governors

2011/12

Executive

Budget

represents

a

total

Commonwealth

operating

budget

of

$63.6billioninstateandfederalfunds.Thisrepresentsadecreaseofapproximately$3.3billionor4.9

percentcomparedtotheupdatedfiscalyear2010/11budgetof$66.8billion.

The Commonwealths operating budget includes the state General Fund, federal funds, the Motor

License Fund, and other special funds (i.e., Lottery Fund and Tobacco Settlement Fund). Often,

policymakers focus on state General Fund expenditure trends; however, since funding for major

programs(suchasMedicalAssistance)canstraddlemultiplefunds,thefocusonanysinglefundinstead

of total operating funds can significantly distort the facts. The importance of examining combined

operatingfundsisexemplifiedinGovernorCorbettsbudgetrequestwiththedisappearanceoffederal

offsetfunds,aswellastheproposedtransferoftheTobaccoSettlementFundandsomeofitsprograms

totheGeneralFund.

Thepiechartbelowshowsthedistributionofthe2011/12ExecutiveBudgetbyfund.Statefunds,ledby

theGeneralFund,represent65percentoftotalspendingandfederalfundsaccountfor35percent.


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Page2

Comparedto2010/11,stateexpendituresfromallfundsincreasebyabout$1.5billionforthe2011/12

budget year, or about 3.8 percent, and federal funds decrease by $4.8 billion or 17.8 percent. The

reductioninfederalfundingreflectsthedisappearanceofmoniesmadeavailabletoPennsylvaniafrom

the

American

Recovery

and

Reinvestment

Act

of

2009

(ARRA)

and

subsequent

legislation

enacted

by

Congress in 2010 which helped states address unprecedented budget deficits during the current

economicdownturn.

ARRA provided significant fiscal relief to the states by temporarily increasing the Federal Medical

AssistancePercentage(FMAP)forstateMedicaidprogramsandbyallocatingFiscalStabilizationFunds

whichstatesusedforeducationandotherpublicsafetyservices.AsauthorizedunderARRA,theFiscal

Stabilization Funds were available through fiscal year 2010/11 and the enhanced FMAP through

December2010.InAugust2010,CongresspassedlegislationthatextendedtheenhancedFMAPthrough

June2011.ThissameactprovidednewEducation JobsFundstothestateswhich is intendedtobe

usedforthe2010/11schoolyear.

Overthepastthreefiscalyears,Pennsylvaniahasutilized these federal fundstooffsetexpenditures

whichotherwisewouldhavebeenpaidforwithstateGeneralFunds.Whilestimulusfundswerenot

enough to allow for normal growth in expenditures, Pennsylvania was able to mitigate some of the

effectsofreducedrevenuesonprograms.

FiscalStabilizationFundshavebeenusedtohelpfundtheagencybudgetsfortheDepartmentsofEducation,CorrectionsandGeneralServices.

TheadditionalfederalreimbursementsearnedundertheARRAFMAPhavebeenappliedtoMedicalAssistanceandotherMedicaidrelatedprogramsthatserveindividualswith

intellectualdisabilities,autism,andphysicaldisabilities.TheARRAFMAPreflectsstateMedicaid

expenditures

that

are

temporarily

shifted

to

the

federal

government

during

the

stimulus

period.

Gov.CorbettproposestousethenewEducationJobsFundstopayforbasiceducationin2010/11.

ThebargraphonthefollowingpageillustratesfederalfiscalrelieffundsusedtosupportGeneralFund

budgetsfrom2008/09through2010/11.AsproposedbyGov.Corbett,thesefundsarenolonger

availableafterJune30,2011.Foramoredetailedlookattheapplicationoffederalfundstooffsetstate

expenditures,pleaseseeAttachmentB.


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$1.239B

$2.698B$3.005B

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2008/09 2009/10 2010/11 2011/12

FederalFiscalReliefDisappears(DollarsinBillions)

ARRA FMAP ARRA FiscalStabilizationFund Education JobsFund

GeneralFund

TheGeneralFundisthemajoroperatingfundoftheCommonwealth,representingthelargestportionof

state and federal spending. It also is the fund over which policymakers have the most influence on

expenditures.

Governor Corbetts 2011/12 state General Fund budget request is $27.3 billion. The budget year

reductionstospendingaredeepandaclearunderstandingofacomparisonbetweenthebudgetyear

andcurrentyeariscomplicatedbyproposedfundtransfersandfederaloffsetfunds.Consequently,an

analysisoftheproposedexpenditurechangesisexaminedunderthesubsectiononExpenditureslater

inthissection.

TheExecutive Budget assumes $27.3 billion instate GeneralFunds available to spend in 2011/12, an

increase of nearly $1.8 billion compared to 2010/11. These available state funds reflect the Corbett

Administrationsupwardrevisiontothe2010/11revenueestimateandproposedchangestotaxesand

otherfundingsourcesintheupcomingyear.

The financial statement on the following page provides an overview of Governor Corbetts revenue

assumptions and expenditure recommendations. A detailed discussion of General Fund revenues and

expendituresimmediatelyisprovidedlaterinthissection.


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intergovernmentaltransferfundsstillheldinreserveandavailabletouseinlieuofstate

GeneralFunds.

o Anoffsettingreductionof$87millioninfederalARRAFMAPfunds. Also on the expenditure side, the Governor proposes a $178 million cut in 2010/11 state

appropriations(reportedascurrentyearlapsesonthefinancialstatement).Thisincludeshis

proposal to use the new federal Education Job Funds to offset a reduction of $388 million in

2010/11stateexpendituresforbasiceducation.

On the revenue side, Governor Corbett assumes 2010/11 revenue collections will exceedestimateby$78millionanduses$180millionofadditionalrevenuesassociatedwithunspent

fundsfromprioryearbudgets(reportedasprioryearlapsesonthefinancialstatement).

Disappearingfederalfiscalreliefcombinedwiththe lossofonetimerevenuesourcesused in2010/11

ledtoa2011/12budgetgapthatweestimatedwouldexceed$4billion.Toaddressthisproblem,Gov.

Corbettsproposalprimarilyreducesexpenditures incombinationwithproposalstomodifyGeneral

Fundsourceswithoutadditionaltaxes. OuranalysisoftheExecutiveBudgetrevealsthefollowing:

Expenditures are cut $2.6 billion. This includes only those state appropriations that wereeliminatedorreduced,aswellascostcontainment initiativeswithintheDepartmentofPublic

Welfarebudget.

Newfundsavailabletospendtotal$1.4billion.Thisincludesthe$586millionbalancecarriedover from 2010/11, projected growth in revenue receipts of $615 million, $9.1 million in

changestotaxcreditprograms,andproposedfundmodificationsforanadditional$215million

(weonlycountthatpartofthetobaccorevenuesthataretransferredtotheGeneralFundand

notearmarkedforaspecificpurpose).

Pensioncosts,whilereducedsignificantlybyAct20of2010,continuetorisebyapproximately$294million.

Numerousbudgetdriversimpactthe2011/12budget:

Over$3billioninfederaloffsetfundsincluding$2.7billionofARRAfundsand$388millionofEducationJobFundsarenolongeravailabletocoverGeneralFundexpenditures.

Anadditional$250millioninfederalfiscalreliefwasprovidedtoPennsylvaniain2010/11viaareductioninthemonthlyMedicarePartDpaymentsowedtothefederalgovernmentandis

nolongeravailable.

$869millioninonetimefundingsourcesusedin2010/11arenolongeravailablein2011/12.This includes the $121 million redirected from the Tobacco Settlement Fund to help cover

pensioncostswhichwouldhaveotherwisebeenpaidwithGeneralFunds.


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$20.56 $20.06$21.31

$22.83 $24.31

$25.85

$27.45 $27.93

$25.53

$27.65 $26.79$27.95

$0

$4

$8

$12

$16

$20

$24

$28

GeneralFundRevenues(DollarsinBillions)

NonTax Tax

ThebargraphalsoshowstheGeneralFunduseofnonrecurringrevenues(largelytransfersfromother

funds)tohelpbalancebudgetsinrecentyears.ThisisillustratedbythenontaxportionofGeneralFund

revenues.WhiletheExecutiveBudgetanticipatescontinuedgrowthintaxcollectionsthrough2011/12,

itdoesnotexpecttheserecurringGeneralFundrevenuestofullyreboundtotheir2007/08peaklevelof

$25.37billion.

FundingModifications

Although Gov. Corbett does not propose any new taxes or depend on onetime funds from liquor

storeprivatization, the2011/12budgetdoescontainproposals fornewrevenuegeneratedthrough

cutstocurrentlyslatedtaxcreditprograms.GeneralFundrevenuesalsoareproposedtobebolstered

primarily by transfers from other funds, especially the Tobacco Settlement Fund. The Governors

proposedGeneralFundrevenuemodificationstotal$540.1million.

Netproposedchangesof$9.1milliontotaxcreditprogramsareasfollows:

Adecreaseof$15million inthecapoftheFilmTaxCreditwhich isexpectedtoresult in$5.1millionofadditionalrevenuein2011/12.

Adecreaseof$12.4millioninthecapoftheJobCreationTaxCreditwhichisexpectedtoresultinanadditional$4.2millionin2011/12.


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Page8

An increase of $15 million in the cap of the Research and Development Tax Credit which isexpectedtoresultinarevenuelossof$200,000in2011/12.

Gov.Corbettsproposalincludesalmost$531millioninnontaxrevenuetransferstotheGeneralFund.

Thesetransfersareasfollows:

$8.3millionfromthePennsylvaniaHigherEducationAssistanceAgencythroughthetransferofunusedfundsfrom2010/11.

$44.0millionfromthecontinuedredirectionofmovingviolationsurchargesauthorizedbytheCatastrophic Loss Benefits Continuation Fund, traditionally deposited in the Medical Care

AvailabilityandReductionofError(MCARE)Fund.

$478.6millionfromtheproposaltomovetheTobaccoSettlementFundintotheGeneralFund.Thiswouldincludea$140milliontransferoftheremainingbalanceaswellas$338.6millionin

revenues from the Master Settlement Agreement that would accrue to the General Fund in

2011/12.Notethat$324million inTobaccoSettlementFundexpenditureswouldalsotransfer

totheGeneralFundleavinganetincreaseinnewstateGeneralFundsof$154million.

This budget provides a tax benefit this year to corporations worth roughly $200 million over the

currentandbudgetyearbyallowing100percentbonusdepreciation.Corporationsthatpurchasenew

equipmentcandepreciatethefullvalueinthecurrentyear,asopposedtodepreciatingitoveraperiod.

This lowers the tax liability of corporations in the shortterm; however, offsetting tax liability in

subsequent years is then higher. This bonus already has been granted to corporations via a policy

decisionissuedbytheDepartmentofRevenueinFebruary2011andappliestothelastquarterof2010

through 2011. The policy decision resulted from the federal Tax Relief, Unemployment Insurance

ReauthorizationandJobCreationActof2010,whichallowsforbonusdepreciationonthefederallevel.

Statelawisambiguousinrelationtofederaltaxlawonthispoint.

The GovernorsBudgetreferences severalotherchanges to tax rates and taxcredits;however, it is

importanttonotethatthesechanges,listedbelow,arealreadyscheduledtotakeplaceassetforthin

currentstatute.

Gov.Corbettassumesareinstatementof thecapitalstock and franchise taxphaseout,a taxreductionworthroughly$70million in thebudgetyear.Thisbudgetproposal isbasedon the

currentlyscheduledphaseoutset instatutebyAct48of2009.Theratesetforcalendaryear

2011 is 2.89 mills; 2012 at 1.89 mills; 2013 at 0.89 mills; and is scheduled to be completely

phasedoutbeginningin2014.

TheGovernorsproposalclaimstoincreasetheEducationalImprovementTaxCredit;howeverthe proposal is commensurate with existing law which increases the program cap from $60

millionto$75millionassetforthinAct48of2009andAct46of2010.

AccordingtotheGovernorsExecutiveBudgetdocument,thisbudgetprovidessignificanttaxcreditsfor

jobcreatorshoweverthesetaxcreditprogramsarealreadysetinstatuteatthefollowingidentified


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levels:NeighborhoodAssistanceTaxCredit($18million);CoalWasteRemovalandUltraCleanFuels

Tax Credit ($18 million); and Resource Enhancement and Protection Tax Credit ($10 million). He

proposes to reduce the Film Production Tax Credit ($60 million) and Job Creation Tax Credit ($10

million).

Expenditures

The Executive Budget proposes $27.3 billion in state General Fund expenditures for 2011/12.This

requestincludes$324millioninprogramexpendituresthatwerefundedpreviouslyundertheTobacco

SettlementFund(thisispartofGovernorCorbettstobaccofundsinitiativewhichisdescribedunderthe

TobaccoSettlementFundsectionofthisdocument).ThefollowingpiechartshowshowtheGovernors

2011/12spendingproposalisdistributedamongmajorprogramareas.

*Includes$324.1millionoftobaccofundedprogramsthattheExecutiveBudgetproposestomovetotheGeneral

Fundin2011/12.

Comparing2011/12GeneralFundexpenditureswiththecurrent2010/11fiscalyearisnotsoclearcut

andrequiresabriefexplanation.Amajordifficultyisthatthefederaloffsetfunds($3.055billion)usedin

2010/11 and the proposed transfer of Tobacco Settlement Fund expenditures ($324 million) to the

GeneralFundinthebudgetyearmasksastraightforwardunderstandingofthefinancialstatement.

Typically, expenditures reported on the financial statement only would refer to state General Fund

appropriations.However,duringthefederalstimulusperiod,budgetmakershaverationalizedthatthe

appropriationnumbershouldalsoincludefederaloffsetfundsusedtosupporttheGeneralFundbudget


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Page10

in order to maintain perspective on state spending trends. The table below illustrates alternative

approaches tounderstandingCorbetts proposed changes to General Fundbudget year expenditures:

thefirstapproachexaminestotalappropriations(includingfederaloffsetfunds)andthesecondfocuses

only

on

state

General

Fund

appropriations.

Each

method

is

appropriate

and

provides

different

but

helpfulinformation.

Additionally,foreachapproach,thetableshowsthebudgetyearexpenditurenumberswithandwithout

the proposed transfer of Tobacco Settlement Fund expenditures to the General Fund. Yeartoyear

comparisonsaresignificantlydistortedwhenexpendituresnewtotheGeneralFundinthebudgetyear

arespent fromadifferent fund in theprioryear.BecausetheTobaccoSettlementFundexpenditures

werenotpartofthe2010/11GeneralFundBudget,theirinclusioninthebudgetyearexaggeratesthe

growth inGeneralFundexpendituresby$324million.Removingtheseexpendituresfacilitatesamore

appropriatecomparisonbetweenthetwofiscalyears.

Proposed

General

Fund

Expenditures

Analysis

2011/12Governor'sExecutiveBudgetProposal

(inmillionsofdollars)

2010/11

Updated

2011/12WithTobacco

FundExpenditures

2011/12Without

TobaccoFund

Expenditures

$'s $'s Change $'s Change

Appropriations* $28,035 $27,331 $27,007

Plus:SupplementalAppropriations $163 $0 $0

Expenditures $28,198 $27,331 $867 $27,007 $1,191

Less:FederalOffsetFunds $3,055 $0 $0

Subtotal StateAppropriationsOnly $25,143 $27,331 $2,188 $27,007 $1,864

TheGovernorsBudgetHighlightsshowhisproposedGeneralFundbudgetdecliningby$866million

from $28.198 billion in the current year to $27.331 billion in 2011/12. The decline represents a

comparison between the spending request for 2011/12, which includes the transfer of Tobacco

SettlementFundexpenditures,andanupdated2010/11spendingnumberthat includesfederaloffset

funds ($3.055 billion) and supplemental appropriations ($163 million). This approach provides an

understanding that accounts for the disappearance of federal offset funds and is the approach

referenced in the Governors literature. The more appropriate comparison, after accounting for the

shift of Tobacco Settlement Fund expenditures into the General Fund, shows spending actually

declines by $1.2 billion dollars this is the approach used in Attachment C which compares stateappropriationsplusfederaloffsets,byagency,forfiscalyears2009/10through2011/12.

To understand what is happening with stateonly funds in the General Fund, a further adjustment is

made to 2010/11 expenditures to remove federal offset funds and focus on the state appropriations

only. Under this approach, state spending in the Governors 2011/12 budget proposal increases by

nearly $2.2 billion, instead of declining $866 million. Stateonly spending increases by $1.9 billion


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The pie chart that follows shows how the $2.6 billion in state General Fund cuts are distributed by

programarea.Aswehadanticipated,thevastmajorityofthecutsfallwithintheareasofeducationand

publicwelfare.Educationwouldbe cutby$1.86billion, representing71percentof total cuts.Public

Welfare

would

be

cut

by

$519

million,

representing

of

20

percent

of

total

cuts.

The

remaining

cuts

are

distributedthroughoutotheragenciesandprograms.

The following sectionsdiscussGeneral Fundbudget issues aswell as significantbudget andpolicy

changesbyagency(inalphabeticalorder).AsmoredetailsemergeregardingGov.Corbettsproposed

budgetandpolicychanges,ourofficewillcontinuetoprovideuptodate,detailedanalyses.Again,for

detailonexpenditure levelsfor individualappropriations,pleasereferenceourspreadsheetdocument

Governor'sProposed2011/12Budget:StateandFederalAppropriations(GeneralFund)March11,2011,availableonourwebsite(www.hacd.net).

PensionContributionsPrior to the enactment of Act 120 of 2010, both the Public School Employees Retirement System(PSERS)andtheStateEmployeesRetirementSystem(SERS)facedadramaticcontributionratespikein

2012/13.Withoutthislegislativeaction,combinedtotalemployercontributions(baseduponpercentage

ofpayroll)wouldhave risen toapproximately$5.8 billion ($4.2billion forPSERSand$1.7 billion for

SERS).TheGeneralFundportionofthistotalcostwouldhavebeen$3.1billion.


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Page13

ForPSERS,theemployercontributionratewouldhaveincreasedfrom10.22percentin2011/12tomore

than 28.71 percent in 2012/13, equating to additional contributions of $2.7 billion, affecting school

districtsandtheCommonwealth.ForSERS,theemployercontributionratewouldhaveincreasedfrom8

percent

in

2011/12

to

more

than

26

percent

in

2012/13,

equating

to

additional

contributions

of

more

than $1.2 billion. The General Fund only portion of this combined increase in 2012/13 would have

been$2.1billionandlocalschooldistrictswouldhaveexperiencedanincreasedcostof$1.2billion.

Act 120 of 2010 (House Bill 2497), tempered this dramatic rate spike by instituting changes to the

actuarialmethodology,reducingbenefitsforfutureemployees,andapplyingcontributionratecollars

tosmooththeimpactofthespike.AsaresultofAct120,theGeneralFundwillrealizeareductionof

retirementexpendituresofapproximately$122million in2011/12,$1.8billion in2012/13and$1.6

billionin2013/14,comparedtopreviousprojections.Thechartbelowcomparesemployercontribution

ratesandtheGeneralFundportionofexpectedcostswithandwithouttheenactmentofAct120.This

charthasbeenupdatedtoreflectPSERScurrentactuarialvaluationdata.

Fiscal

Year

TotalEstimatedCostpriorto

Act120of2010

TotalEstimatedCostasaresultof

Act120of2010 GENERAL

FUND

SAVINGS

(inmillions)

Employer

Contribution

Rate

GeneralFund

StateShare

(inmillions)

Employer

Contribution

Rate

GeneralFund

StateShare*

(inmillions)

PSERS SERS PSERS SERS PSERS SERS PSERS SERS

PSERS+

SERS

201011 5.64% 5.00% $419.1 $148.5 5.64% 5.00% $419.1 $148.5 $0

201112 10.22% 8.00% $793.2 $245.5 8.65% 8.00% $671.6 $245.5 $122

201213 28.71% 26.71% $2,299.9 $846.0 12.19% 11.50% $976.8 $364.0 $1,805

201314 31.20% 29.27% $2,579.3 $957.5 16.69% 16.00% $1,380.0 $523.5 $1,633

201415 32.35% 27.77% $2,762.8 $938.5 21.18% 20.50% $1,809.0 $693.0 $1,199

201516 31.66% 27.51% $2,796.2 $960.5 23.66% 25.00% $2,089.5 $873.0 $794

201617 31.13% 27.14% $2,846.3 $978.5 24.50% 28.25% $2,240.2 $1,018.5 $566

201718 30.47% 26.69% $2,886.8 $994.5 25.27% 27.79% $2,394.2 $1,035.5 $452

NOTE: Governor'sproposedbudgetprovides$615,086,000forPSERSGeneralFundstatesharein2011/12. Thisdecreaseis

attributedtothequarterlaginthestatespayment.

*Generalfundstateshareassumes55%oftotalforPSERSand50%oftotalforSERS

PSERSquarterlagisnotpartofcalculations

Gov.Corbetts2011/12proposedbudget accounts for thecontributionratesset forth inAct120of

2010. A quarter lag in Commonwealth payments accounts for the difference between the proposed

budgets$615millionandtheabovechartsprojectionof$672million.

In2010/11, theTobaccoSettlementFundsubsidized$121 million of the General Fund portionof the

school employers pension contribution amount. For 2011/12, the budget proposal assumes full

paymentofthesecostsfromtheGeneralFundSchoolEmployeesRetirementappropriationunderthe


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DepartmentofEducation.Noteaportionoftheemployercontributionamountpaysforthehealthcare

costs,keepinginlinewiththetraditionofTobaccoSettlementFundsbeinglinkedtohealthcarerelated

expenditures.

PennsylvaniaEmployeeBenefitsTrustFund

The Pennsylvania Employees Benefits Trust Fund (PEBTF) was created as the result of a collective

bargainingagreementbetweentheCommonwealthofPennsylvaniaandCouncil13oftheAmerican

FederationofState,CountyandMunicipalEmployees(AFSCME).Thecompanyadministershealthcare

insurance benefits to approximately 84,000 eligible state employees and their dependents, 60,000

retireesandtheirdependents,aswellasadditionalemployergroups,suchasactiveemployeesatthe

Public School Employees Retirement System (PSERS) and the State Employees Retirement System

(SERS).

Inordertoavoidrollingfurloughsofemployees,GovernorRendellandunionrepresentativesagreedto

a Memorandum of Understanding (MOU) in 2009. Because the PEBTF fund had a significant reservebalance,theCommonwealthpayments toPEBTFwere temporarilyreducedby20percentovera15

month period (April 2009 through June 2010), resulting in a savings to the Commonwealth of

approximately$177million.Repaymentofthisloanwassettobegininthefallof2010.

Currently, the Corbett Administration is engaged in talks with union representatives regarding PEBTF

payment assumptions in 2010/11 and 2011/12. Note the numbers assumed for both years in the

ExecutiveBudgetdocumentreflectmaintainingareducedpaymentof$400peremployee,asunderthe

aforementionedMOUagreement.Theseassumptionsresultinasavingsofanadditional$7075million

in2010/11andasavingsofnearly$82millionin2011/12.

CommonwealthDebt

TheGovernorsExecutiveBudgetcallsfor increasedstateappropriationstotheTreasury.The increase

largely is driven by General Obligation debt service costs. The General Obligation debt service

appropriation under Treasury has increased by $81.5 million over the prior years levels, to $1.056

billion.

Even with the increases in debt service, Pennsylvanias debt levels are very manageable. The

Commonwealth currently enjoys solid bond ratings. Pennsylvanias ratings are Aa1 from Moodys

InvestorService,AAfromStandardandPoorsRatingServiceandAA+fromFitchInvestors.Accordingto

Standard&Poorscriteria,debtasapercentofpersonal incomebelow threepercent isconsidereda

lowdebtburden.Pennsylvaniasratioiscurrently2.3percent.

Agriculture

UndertheGovernorsbudgetproposalfor2011/12,theDepartmentofAgriculturereceivesanumber

of cuts, many carrying forward budgetary freezes from the 2010/11 budget. The following programs

wouldbeeliminated:AgriculturalExcellence,AgricultureResearch,AgriculturePromotion,Education


19/59


and Exports, Hardwoods Research and Promotion,Animal Indemnities, Livestock Show,Open Dairy

Show,FoodMarketingandResearch,CropInsurance,andFarmSchoolNutrition.

Asinotheragencies,Gov.Corbettproposestheconsolidationofnumerouslinesinthedepartment.

Agency/ExistingProgram ProposedProgram

Agriculture

Governor'sAdvisoryCouncilonRural

AffairsGeneralGovernmentOperations

AgriculturalConservationEasement

Administration

NutrientManagementAdministration

JuniorDairyShows YouthShows

4HClubShows

FutureFarmers

The proposal includes an increase for the Weights and Administration (through the Motor License

Fund)tocoversixadditionalpositions.

This budget proposal transfers the appropriation for the University of Pennsylvanias Veterinary

Activities fromEducation toAgriculture (VeterinaryActivitiesandCenter for InfectiousDisease). Gov.

CorbettsproposalalsotransferstheGovernorsAdvisoryCouncilonRuralAffairsfromtheExecutive

OfficestotheDepartmentofAgriculture.

BoardofProbationandParole

TheGovernors2011/12budgetproposes$128.1millionforthePennsylvaniaBoardofProbationand

Parole(PBPP).Thisisa6.3percentincreaseor$7.5millionmorethan2010/11.TheGovernorindicates

thatthisincreaseisforadditionalparoleofficers(53)andinvestigators(2)todealwiththebacklogof

inmates eligible for parole. Inmates cost the Commonwealth approximately $35,000 per year to

superviseundertheDepartmentofCorrectionsversus$3,000peryearforsupervisionunderProbation

andParole.

While PBPPs General Government Operations appropriation and the Sexual Offenders Assessment

Board will receive increases in funding, funding for Improvement of Adult Probation Services is cut

nearlytwopercent.Thisreductionwillaffectcountyreimbursements.


Page15


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Page16

CommunityandEconomicDevelopment

The overall budget for the Department of Community and Economic Development (DCED) has been

reducedby32percent,orapproximately$106million.Similarly,127programsfundedinFY10/11have

beenreducedto57programsintheGovernorsproposal.

Ofequal importance,regulatory reforms advanced by Corbetts budget will significantly expand the

authorityoftheDCEDSecretarytoexpediteanypermitoractionpendinginanyagencywherethe

creationofjobsmaybeimpacted.

Gov.CorbettsbudgetproposesasignificantredesignofDCEDthroughtheelimination,reduction,and

consolidationofmultipleprograms.

Gov. Corbetts budget proposes a restructure of DCED programs aimed to foster opportunities for

business and communities based upon three core principles: forging partnerships with the private

sector, advancing performance based initiatives, and increasing the level of competition for state

resources.

Gov.CorbettsproposalprovidesfortheLibertyLoanFundAuthorityandLibertyLoanFund(LLF),a$2

billion fund overseen by a new authority. This program is intended to pool existing economic

development financing resources for purposes of leveraging private investment for economic

development opportunities. Importantly, the Governors proposal would dissolve the existing

CommonwealthFinanceAuthority (CFA)andPennsylvania IndustrialDevelopmentAuthority (PIDA).

Inaddition,theproposalwoulduse$220million inTobaccoSettlementFunds, traditionallyusedfor

healthrelatedpurposesforthisnewLibertyLoanFund. Furtherdiscussioncanbefoundinthesection

entitledTobaccoSettlementFundlaterinthisdocument.

Thetableonthefollowingpageprovidesalistingoftheprograms/fundsincorporatedintotheLLF.


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Community&EconomicDevelopment

AlternativeandCleanEnergyProgram

LibertyLoanFund(LLF)

BuildingPA

BusinessinOurSitesGrantsandLoans

CommunityEconomicDevelopment

LoanProgram

CommonwealthFinancingAuthority

FirstIndustriesAgriculture

FirstIndustriesTourism

H2OPrograms(FloodControl,High

HazardUnsafeDamProjects,Water

Supply,SanitarySewerandStorm

WaterProjects)

HighPerformanceBuildingProgram

PennsylvaniaIndustrialDevelopment

Authority

MachineryandEquipmentLoanFund

PennsylvaniaMinorityBusiness

DevelopmentAuthority

PennsylvaniaPollutionPrevention

AssistanceProgram

RenewableEnergyProgram

GeothermalandWindProjects

SecondStateLoanProgram

SolarEnergyProgram

TaxIncrementFinancingProgram

Water

Supply

and

Wastewater

InfrastructureProgram

SmallBusinessFirstFund

TobaccoSettlementFundInvestments


Page17


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Gov.Corbettalsoincludestheconsolidationoftheappropriationsdetailedinthefollowingtable:


Community&EconomicDevelopment

MarketingtoAttractTourists MarketingtoAttractTourists

TouristPromotionAssistance

PennPortOperations

PennPORTS

PortofPittsburgh

PortofErie

PhiladelphiaRegionalPortAuthority

Operations

NavigationalSystem

GoodsMovementandIntermodal

Coordination

OpportunityGrantProgram

PennsylvaniaFirstCustomizedJobTraining

InfrastructureDevelopment

SharedMunicipalServices

MunicipalAssistanceProgramLandUsePlanningandTechnical

AssistanceProgram

FloodPlainManagement

AccessibleHousing

KeystoneCommunities

Housing&RedevelopmentAssistance

NewCommunities*(includesEnterprise

ZoneProgram,MainStreetProgram,Elm

StreetProgram)

IndustrialDevelopmentAssistance

PartnershipsforRegionalEconomic

Performance

LocalDevelopmentDistricts

SmallBusinessCenters

IndustrialResourcecenters


Page18


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Page19

Gov.Corbettsbudgetproposalincludes$10millionforDiscoveredinPA,DevelopedinPA.According

to the proposal, this new program will help small businesses identify and access the appropriate

services and financing to help them be more competitive and grow their operations in the

Commonwealth.

Corbettsproposalalsoprovides$6.3millionforWorldTrade PAtopromotePennsylvaniagoodsand

services in key international markets. The proposed budget continues funding to the Ben Franklin

Technology Development Authority ($14.6 million) to advance technologybased and technology

intensive industries in Pennsylvania. Lastly, Gov. Corbett continues funding for the Life Sciences

Greenhouses,historicallyfundedthroughtheTobaccoSettlementFund.

ConservationandNaturalResources

Gov.Corbettsbudgetproposaldrasticallyreduces overallstateGeneralFundsfortheDepartment of

ConservationandNaturalResourcesby$24.1million(29.3percent)fromthecurrentyearfundingof

$58.3 million. This reduction reflects decreases from the current year funding of $18.6 million (39.9percent)toStateParkOperations,$4.1(34.1percent)toStateForestOperations,and$1.2million(6.3

percent)fromGeneralGovernmentOperations.

Thesedecreasesareoffsetbyanincreaseof$32.9millionfromotherstatecashfundsandaugmented

revenues. This includes $16.5 million from the Oil and Gas Lease Fund and $15.4 million from the

KeystoneRecreation,ParkandConservationFund.

Corrections

The Governors 2011/12 budget proposes nearly $1.9 billion in state funds for the Department of

Corrections (DOC), an increase of $186.5 million or 11 percent over last year. Remember, the

Commonwealth used $173 million in federal offset funds for Corrections during the 2009/10 and

2010/11fiscalyears.WhiletheGeneralGovernmentOperationsappropriationforDOCwillseeaone

percent decrease in funding, the proposed budget increases Medical Care (0.4 percent), Inmate

Education and Training (0.4 percent), and the State Correctional Institution (13.5 percent)

appropriations.Thisproposaleliminates23positionsunderGeneralGovernmentOperations.Notethat

theCommonwealthisconstitutionallyobligatedtoprovideinmatemedicalcare.

As of December 2010, there were 51,321 inmates, a decrease of 50 inmates from January 2010.

PennsylvaniasStateCorrectional Institutionsatfullcapacityhold43,584 inmates.Therearecurrently

2,180 inmateshoused inprisons inMichiganandVirginiawhoGov.Corbettproposestoreturntothe

Commonwealth.Inaddition,thisbudgetproposalprovides1,260newbedswithinexistinginstitutions

andcommunitycorrectionscenters.


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Education

Pre Kthrough12Education

Gov.

Corbett

proposes

more

than

$1.1

billion

in

spending

cuts

for

Pre

K

through

12

education

programs in the Department of Education (PDE). When including increases in mandatory

reimbursement line items such as Pupil Transportation and School Employees Retirement, the

proposedbudgetshowsanetreductionofnearly$819million,or8.2percent.

Corbettsbudgetproposalincludesareductioninthetotalbasiceducationsubsidyof$550million,or

9.5percent,from$5.8billionin2010/11to$5.2billionin2011/12.Thisproposedfundingrepresentsa

rollbacktothe2008/09level.

The spreadsheet posted on Department of Educations website, as of March 22, 2011, reflects

onlythestatefundingthatschooldistrictsreceivedin2010/11.Whencomparingonlystatefunds

for2010/11,itappearsthatfundingincreasedformanyschools.Infact,schooldistrictsreceived

anadditional$654millioninfederalARRAfundsaspartoftheirbasiceducationsubsidypayment

for 2010/11. Comparing the total basic education subsidy payments from 2010/11 to 2011/12,

basiceducationfundingforschooldistrictsiscutby$550million.

Gov.Corbettsproposaleliminatesthecurrentbasiceducationsubsidyfundingformula,resultingfrom

theGeneralAssemblyspassageoftheCostingOutStudyandusedinthepastthreefiscalyears.Corbett

proposesanewfundingformulathatprovidesdistrictswiththestateshareonlyfrom2010/11,abase

supplementof$100perstudent,andotherallocationsbaseduponcalculationsusingtheconcentration

of English Language Learner (ELL) students, district poverty level, and district size. The amount of

funding received depends upon a districts relative wealth and tax effort. Gov. Corbetts proposed

funding formula does not calculate adequate and equitable spending using a calculation of each

districtsactualspendingasdidtheCostingOutStudyformula.


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Page21

Gov.CorbetthasproposedeliminatinganumberofprogramswithinPDE,showninthefollowingtable.

EliminatedProgramsinEducation(PreKthrough12)

(inthousands)

Program 2010/11Amount

ReimbursementofCharterSchools $224,000

PennsylvaniaAccountabilityBlockGrants $259,000

EducationAssistanceProgram $47,600

IntermediateUnits(IU)1 $4,800

DualEnrollment2 $7,000

Science:ItsElementary $6,900

HighSchoolReform $1,800

1ThegovernorsproposalsuggeststhatsomefundingremainsintheGGOtoassistsomeIUs.Additionally,IUswouldstillreceive

fundingfromlinessuchasspecialeducation,earlyintervention,andnonpublicschoolservices.

2For Dual Enrollment payments, the proposed budget indicates that students will be able to utilize a portion of their basic

education funding for dual enrollment. The governor has stated that students in their final years of high school should have

opportunities toacquirepostsecondarycreditsandthatschooldistrictsshouldconsidermodifyingtheir resourceallocations to

providestudentswiththisopportunity.

Inadditiontothebasiceducationsubsidy,Gov.Corbettproposesthereductionofnumerousprograms

inPDE,asseeninthetablethatfollows.

ReducedProgramsinEducation(PreKthrough12)

(inthousands)

Program

$Cut

from

2010/11

%Cut

from

2010/11

StateLibrary ($164) 7.3%

PreKCounts ($1,600) 1.9%

TeacherProfessionalDevelopment ($14,300) 66.0%

AdultandFamilyLiteracy ($2,500) 17.0%

EducationofMigrantLaborersChildren ($181) 17.0%

ServicestoNonpublicSchools ($1,100) 1.2%

Textbooks,MaterialsandEquipmentforNonpublicschools ($477) 1.8%

PublicLibrarySubsidy ($1,000) 1.9%


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Page22

Gov.CorbettalsodecreasesthemandatedSchoolEmployeesSocialSecuritypaymentbymorethan

$21 million under the 2010/11 payment. The Governor proposes changing the formula for the

Commonwealthssocialsecurityreimbursementpayment.UnderAct29of1994,anequitycomponent

was

introduced

for

the

Commonwealths

portion

of

social

security

and

retirement

reimbursement

for

schools.Foremployeeshiredafter1994,schoolswerereimbursedforthegreateroftheiraidratioor50

percent of the employers share. This means school districts with aid ratios less than 0.5 were

reimbursedatthe50percentrate.TheGovernorproposesreimbursingschooldistrictsattheaidratio

level for each district. For 158 districts, this reimbursement level will be less than 50 percent. This

changeisactuallyasavingstothestate(butacosttoschooldistricts)ofapproximately$40millionof

whattheCommonwealthwouldhavepaidfor2011/12underthecurrentformula.Becausethisformula

isinstatute,legislationwillberequiredforthischangetotakeeffect.

InadditiontomandatedincreasesinappropriationssuchasPupilTransportationandSchoolEmployees

Retirement,theproposedbudgetincludessomediscretionaryincreases.

IncreasedDiscretionaryProgramsinEducation(PreKthrough12)

(inthousands)

Program

$Incfrom

2010/11

%Incfrom

2010/11

InformationandTechnologyImprovement $1,800 70.0%

PAAssessment $4,000 12.2%

SchoolNutritionIncentiveProgram1 $451 15.7%

EarlyIntervention2 $16,000 8.8%

1FormerlyRxforPASchoolFoodServices

2Forprogramexpansion

Gov. Corbetts budget proposal also includes $2.2 million for a new Safe School Initiative. This is

requiredduetothepassageAct104of2010 (amendingtheschoolcode),whichcreatesaPDEbased

OfficeforSafeSchools.


27/59


28/59



Page24

HigherEducation

GovernorCorbettdrasticallyreducesfundingforhighereducation.FederalARRAfundswereusedto

fund institutionsofhighereducationover thepast threefiscalyears.The2010/11budgetused$93.2

million inARRAfundingwhich isno longeravailable. Inaddition, largereductions instatedollarsalso

have been proposed in the executive budget. Funding for community colleges, the State System of

Higher Education, Thaddeus Stevens College of Technology and the staterelated universities are

detailedinthefollowingtable.

HigherEducation:StateandARRAFunds

2009/10 2010/11 2010/12 NetChange %Change

CommunityColleges $235,741 $235,741 $212,167 ($23,574) 10.0%

State $214,217 $214,217 $212,167 ($2,050)

ARRA $21,524 $21,524 $0 ($21,524)

StateSystemofHigherEducation $503,355 $503,355 $232,599 ($270,756)

53.8%State $465,197 $465,197 $232,599 ($232,598)

ARRA $38,158 $38,158 $0 ($38,158)

PennsylvaniaStateUniversity $333,863 $333,863 $165,094 ($168,769) 50.6%

State $318,072 $318,072 $165,094 ($152,978)

ARRA $15,791 $15,791 $0 ($15,791)

UniversityofPittsburgh $167,995 $167,995 $80,245 ($87,750) 52.2%

State $160,490 $160,490 $80,245 ($80,245)

ARRA $7,505 $7,505 $0 ($7,505)

TempleUniversity $172,737 $172,737 $82,487 ($90,250) 52.2%

State $164,974 $164,974 $82,487 ($82,487)

ARRA $7,763 $7,763 $0 ($7,763)

LincolnUniversity $13,782 $13,782 $6,812 ($6,970) 50.6%

State $13,623 $13,623 $6,812 ($6,811)

ARRA $159 $159 $0 ($159)

ThaddeusStevensCollegeofTechnology $10,876 $10,876 $9,788 ($1,088) 10.0%

State $8,550 $8,550 $9,788 $1,238

ARRA $2,326 $2,326 $0 ($2,326)

Gov.Corbetteliminatesthefollowinghighereducation line itemsunderthePennsylvaniaDepartment

of Education: Regional Community College Services, Higher Education Assistance, Community

EducationCouncilsandMedicalCollegeinNortheastPA.

UnderthePennsylvaniaHigherEducationAssistanceAgency(PHEAA),Gov.CorbettcutstheGrantsto

Studentslineitemby$7.3millionor1.9percent,to$380.9million.TheInstitutionalAssistanceGrants

programwouldbereducedby50percentor$15million.


29/59



Page25

In addition, Gov. Corbett eliminates additional programs under PHEAA: the BondHill Scholarships,

Agricultural Loan Forgiveness,SciTech and TechnologyScholarships,CheneyKeystone Academyand

theNursingShortageInitiative.

Also, note two appropriations have been moved from the Department of Education to PHEAA in the

Governors proposal (Higher Education for the Disadvantaged and Higher Education of Blind or Deaf

Students).Bothappropriationsarereducedby1.9percent.

EmergencyManagementAgency

ThebudgetproposalreducesoverallstateGeneralFundsforthePennsylvaniaEmergencyManagement

Agency (PEMA) by $3.2 million (24.6 percent) from the current year funding of $12.8 million. This

reductionreflects theeliminationoffunding forregional events security($3million)and for theRed

CrossExtendedCareProgram($200,000).

EnvironmentalProtection

IntheDepartmentofEnvironmentalProtection(DEP),theGovernorsproposalreducesstatefunding

by $7.3 million (5 percent) from the current year funding of $45.5 million (excluding funding for the

EnvironmentalHearingBoard).Thisreductionreflects theelimination of Flood Control Projects ($3.5

million)andthereductionof$2.1millionfromGeneralGovernmentOperations.

TotalfundingtotheDepartment isdrasticallydecreasedby$160.0million(19.1percent)fromcurrent

yearfundingof$839.3million.Thisdecreaselargelyreflectstheeliminationof$128.9millionfromthe

American Recovery and Reinvestment Act (ARRA) of 2009 for: energy conservation and efficiency

planning;surveystudies;waterqualitymanagementplanninggrants;andproviding correctiveactions

fortheaboveandundergroundstorageleaks.

TheGovernorsproposaldecreasestheagencystotalcomplementby69fulltimeequivalentpositions

(FTE). These reductions will come from environmental protection operations (30 FTE), environmental

programmanagement(20FTE),floodcontrolprojects(14FTE),andGeneralGovernmentOperations(5

FTE).


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ExecutiveOffices

TheGovernorproposestoconsolidateseveralcommissionswithintheExecutiveOffices.


ExecutiveOffices Commissions

OfficeofPublicLiaison

LatinoAffairsCommission

CommissionforWomen

AfricanAmericanAffairsCommission

AsianAmericanAffairsCommission

PennsylvaniaCommissiononCrimeandDelinquency

Gov.

Corbetts

2011/12

budget

proposal

cuts

General

Government

Operations

for

the

Commission

on

Crime and Delinquency (PCCD) by $150,000. In addition, his proposal consolidates many PCCD

programs.


ExecutiveOffices PublicSafety

ViolencePreventionPrograms

EvidenceBasedPreventionand

Intervention

ResearchBasedViolencePrevention

IntermediatePunishmentPrograms IntermediatePunishmentTreatment

ProgramsIntermediateDrugandAlcohol

Treatment

ImprovementofJuvenileProbation

Services JuvenileProbationServices

SpecializedProbationServices

TheIntermediatePunishmentprograms listedabovearealternativestocounty jailandaremorecost

effectivefornonviolentoffenders.

CorbetteliminatestheVictimsofJuvenileCrimeappropriation.


Page26


31/59


32/59


DuringhiscampaignforGovernor,Corbettclaimedhewouldreducethestateautomotivefleetbyupto

20percent.Notably,inMarchActingSecretaryoftheDepartmentofGeneralServicesstatedasfollows:

At DGS, we have already begun working on the Governors reform plan, setting ambitious

attainable goals. The Bureau of Vehicle Management is conducting an audit of the states

vehiclestodeterminethemostcosteffectivesizeanduseoftheautomotivefleet.Thisincludes

reviewing employee mileage reimbursements to ensure they are utilizing the least expensive

modeoftravel.

Health

Gov.Corbetts2011/12budgetreducesoverallstateGeneralFundsfortheDepartmentofHealth(DOH)

byover$12millionor5.4percent(whenexcludingTobaccoSettlementFundprogramstransferredto

the General Fund). The proposed budget does increase funding for Quality Assurance by nearly $1.7

million, including funds for increased inspections. This appropriation funds the inspections of health

facilities, including abortion clinics. Gov. Corbetts proposal notes that these clinics will be inspectedannually,witharandomsamplebeinginspectedmorethanonceayear.

Additionally, Gov. Corbetts proposal creates a new Tactical Emergency Medical Support (TEMS)

ProgramwithinDOH.TheproposalstatesthatTEMSproviderswillbesworninpoliceofficersattached

totacticalteams,withatleastanEmergencyMedicalTechnicianParamediccertification,andtrainedin

lawenforcementandemergencymedicine.Theseofficerswillhavetheabilitytoassessmedicalthreats,

render immediate medical care in hazardous environments, and provide logistical support that will

furtherthehealthandsafetyoflawenforcementpersonnelandreducetheincidencesofinjury,illness,

disability and death associated with training and tactical operations. The Executive Budget is unclear

regardinghowthisprogramwillbefunded.

As in many agencies, Gov. Corbett significantly reduces, eliminates and consolidates most

appropriationsinDOH.Thefollowingtabledetailsappropriationconsolidationinthedepartment.


DepartmentofHealth

ExpandedCervicalCancerScreening

CancerScreeningServicesCancerControlProgram

BreastandCervicalCancerScreening

Services

for

Children

with

Special

Needs

SpecialMedicalPrograms

AdultCysticFibrosis

Cooley'sAnemia

Hemophilia

SickleCell


Page28


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Page29

Act50of2010createdtheDepartmentofDrug&AlcoholProgramsandtransferredexistingfundingfor

theseprogramsfromtheDepartmentofHealthtothenewdepartment.Gov.Corbettsproposalwould

maintaintheprogramwithintheDepartmentofHealth.

HousingFinanceAgency

The Governors proposed budget eliminates funding for the Homeowners Emergency Mortgage

Assistance program (HEMAP). This program provides loans to homeowners who, through no fault of

theirown,fallbehindontheirmortgagepayments.InadditiontoappropriationsfromtheGeneralFund,

theprogramisfundedbyloanrepayments.Inrecentyears,loanrepaymentswereinsufficienttosustain

theprogram.Inalllikelihood,unlessmajoradjustmentsaremadetotheprogram,theeliminationofthis

appropriationwillresultintheterminationoftheprogram.

Outside of the Homeowners Emergency Mortgage Assistance Program, the Pennsylvania Housing

FinanceAgencyisanindependentagencythatreceivesnoappropriationsfromtheGeneralFundforits

operationsandprograms.

InfrastructureInvestmentAuthority(PENNVEST)

The budget proposal reduces overall funding for the provision of lowinterest loans and grants to

municipalitiesfortheconstructionofdrinkingwater,wastewater,stormwater,andbrownfieldsprojects

by$339.47million(34.7percent).Thisdecreaselargelyreflectstheeliminationof$126millionfromthe

American Recovery and Reinvestment Act (ARRA)of2009 for sewage and drinking water projects, as

wellas$40millioninfederalawardreductionsforothersimilarprojects.

Insurance

Gov.Corbetts2011/12budget reducesoverallstateGeneralFundsfor the Insurance Departmentby

over $781,000 or 0.6 percent. Funding for the Childrens Health Insurance Program remains level

fundedwith2010/11.

TheproposaldoesnotincludefundingfortheGeneralFundrepaymentofaloanfromtheUnderground

StorageTankIndemnificationFund(USTIF).Aspartoftheonetimefixesinthe2002/03GeneralFund

Budget, (USTIF) loaned$100million totheGeneralFund.Perstatute, the loanmustberepaid,with

interest,afteratenyearperiod.UndertheUSTIFLoanRepaymentappropriation,loanrepaymentbegan

in2004/05.DuetotheneedtoreduceGeneralFundspendinginrecentyears,thisappropriationhas

beenunderfundedornotfundedatall.Repaymenttodatehasbarelycoveredtheinterestowed.

Judiciary

The Governors2011/12budget proposes flat funding for all appropriations within the Judiciary for a

total General Fund cost of $276.9 million. The Judiciarys budget request is $328.3 million or $51.4

millionmore than inGov.Corbettsproposal.The Judiciaryrequest isbased on the courtsbringing in

$24.1millioninrevenuefromsurchargesunderAct49of2009in2011/12.TheAct49surchargesexpire

onJanuary7,2012.


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As in other areas, Gov. Corbetts proposal includes the consolidation of appropriations within the

Judiciary.


Judiciary

RulesCommittees

CivilProceduralRulesCommittee

Appellate/OrphansRulesCommittee

RulesofEvidenceCommittee

MinorCourtRulesCommittee

CriminalProceduralRulesCommittee

DomesticRelationsCommittee

JuvenileCourtRulesCommittee

CountyCourtReimbursement

DomesticViolenceServices

GunCourtReimbursement

CourtConsolidation

LawClerks

Labor

and

Industry

ThebulkoffundingfortheDepartmentofLaborandIndustryiscomprisedoffederal,special,andother

funds.StateGeneralFundsareusedtosupportGeneralGovernmentOperations(GGO).Thesefunctions

includethePennsylvaniaLaborRelationsBoard,theOfficefortheDeafandHardofHearing,andLabor

LawCompliance.Gov.CorbettreducestheGGOappropriationby1.2percent.Aseparateappropriation

forOccupationalandIndustrialSafetywasreducedby4.5percent.Thisappropriationprovidesfunding

for enforcement of many of the commonwealths safety laws, including elevator inspections, the

FlammableandCombustibleLiquidsActandahostofconsumersafetylaws.

In addition, the Governors budget eliminates several programs under the Departments purview,

includingthePennsylvaniaConservationCorpswhichfundsconservationprojectsonpublic landsand

facilities involving economically disadvantaged youth. Gov. Corbett also eliminates the Training

Activities line item (funding incumbent worker training grants in conjunction with the Industry

Partnership program) and New Choices/New Options (funding individualized career, education and

personalservicesforsingleparents,displacedhomemakersandsinglepregnantwomen).

Gov.Corbettsproposalalsoincludesreductionsinthefollowingprograms:


Page30


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Page31

The Industry Partnership program by 1.9 percent, which funds worker training for groups ofemployerswithinasingleindustry

AssistiveTechnologyby24percent,whichsupportstheStatewideAssistiveTechnologyLendingLibrary, providing Pennsylvanians with disabilities an opportunity to try expensive assistivetechnologydevicesandequipmentbeforemakingapurchasingdecision.

Supported Employment by 1.9 percent, which helps severely disabled individuals who needextensivesupporttostayinlongtermemploymentafterplacementandtraininghasoccurred.

CentersforIndependentLiving(CILs)by1.9percent,whichallowstheninestatefundedCILstoprovidecommunitybasedsupportsforcitizenswithdisabilities.

The Governors Executive Budget does not propose any solution for Unemployment Compensation

TrustFundsolvency issues.Becauseofthedepthoftherecession,theCommonwealthexhausted the

balance of the fund and must borrow from the Federal Unemployment Account to pay for

unemploymentbenefits.TheamountoftheloanfromtheFederalGovernmentexceeds$3billion,and

hasbeguntoaccrue interest.Whileautomaticsolvencymeasures instatutehavetakeneffecttohelp

repay the loan, the department has estimated that the fund will continue to be insolvent for the

foreseeable future, absent any changes. It is important to note that this issue is separate from the

GeneralFund.

PublicWelfare

Governor Corbetts 2011/12 Executive Budget requests $11.2 billion in state General Funds for the

Department of Public Welfare (DPW). This represents an increase of $2.35 billion from FY 2010/11,

whichincludesa$250millionstatesupplementalrequest.Thesupplementalrequestisrequiredlargely

toadjustforlessthananticipatedfederalMedicaidmatchingfundsthatPennsylvaniawillreceiveforthe

periodJanuary2011throughJune2011astheresultofthescaleddownARRAFMAPextensionpassed

byCongresslastAugust.

The $2.35 billion increase in state appropriations reflects the impact of four factors which must be

taken intoconsiderationtomakean appropriate comparison betweenFY 2011/12andFY2010/11:

ARRAFMAP;clawbacksavings;tobaccofunds;andprioryearfederalfunds.Forthemostpart,these

arebudgetaryfactorswhichrepresentashifttotheGeneralFundofexistingDPWexpendituresanddo

not reflect new or increased spending in the agency. In fact, a much leaner budget emerges after

accountingforthesefactors,withDPWstatespendingdecliningnearly$5million.

Expiration of ARRA FMAP ($1.745 billion). Historically, the federal government has paidapproximately 55 percent of Pennsylvanias Medicaid expenditures in accordance with the

federalMedicaidmatchingrate(orFMAP)whichisbasedonaformulainfederallaw.Duringthe

33month federal stimulus period, October 2008 through June 2011, the federal share has

averaged approximately 65 percent due to provisions in ARRA that temporarily increased the

FMAP.For2010/11,theadditionalfederalMedicaidreimbursementsthatPennsylvaniareceived

under the ARRA FMAPs reduced the state spending requirement for Medical Assistance and

other Medicaidrelated programs (including communitybased waiver programs for disabled


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individuals) by $1.745 billion. Pennsylvanias share of program costs will increase when the

ARRAFMAPexpiresafterJune30,2011andthefederalMedicaidreimbursementratereturnsto

approximately55percentforthe2011/12budget.

ClawbackPaymentSavings($250million).TheclawbackpaymentisthemonthlypaymentPennsylvaniamustmaketothefederalgovernmentforcertainPennsylvanians(personsdually

eligibleforMedicareandMedicaid)enrolledintheMedicarePartDdrugprogram.Theamount

of the monthly payment is based on a formula in federal law, and each month the federal

governmentsendsDPWaninvoicefortheamountowedbytheCommonwealth.Pennsylvanias

payments were significantly reduced in 2010/11 as the result of the Obama Administrations

decision last February to grant additional relief to states by applying the ARRA FMAPs to the

monthlypaymentcalculation.TheseonetimesavingsdisappearwhentheARRAFMAPexpires

andtheclawbackpaymentcalculationwillonceagainbebasedontheregularFMAP.

Tobacco Programs transferred to General Fund ($247.2 million). Beginning in 2011/12, theCorbettAdministrationproposestotransferalltobaccorevenuesandtobaccofundedprograms

totheGeneralFund.Consequently,DPWs2011/12GeneralFundbudgetincludes$247million

in program expenses that were funded in previous budgets through the Tobacco Settlement

Fund. This includes funding for the Medical Assistance for Workers with Disabilities (MAWD)

program($63million),theUncompensatedCarehospitalpaymentprogram($31.5million)and

MedicalAssistanceLongTermCare($153million).Withoutthisproposedshiftinfunding,state

appropriationswouldbe$247millionlowerin2011/12.

Prior Year Federal Funds ($115 million). These are onetime federal funds that Pennsylvaniareceives for state expenditures made in prior years and later determined to be eligible for

federalreimbursement. The2010/11budgetused prior year federal funds to pay forMedical

Assistancemanagedcare($100million)andMentalHealthServices($15million).Withoutthese

federal funds, an additional $115 million of state General Funds would have been needed in

2010/11forthesetwoprograms.

TomitigatetheneedforadditionalstateGeneralFunds,Gov.Corbettsbudgetproposalreducesstate

spendingby$519million in2011/12 throughacombinationofcostcontainment initiativesand the

reduction in line items, including the elimination of 11 DPW line items. The cost containment

initiatives impact Medical Assistance, disability programs, child welfare, and employment/ training

programs for lowincome individuals.Theeliminatedappropriationscut fundingforhospitals,medical

schools,andhumanservices.

MedicalAssistance

The largest component of DPWs budget is the Medical Assistance (MA) program, which provides

health care and long term care services to more than 2.1 million Pennsylvanians. Managed care is

funded through the Capitation appropriation, and the feeforservice program is funded through the


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OutpatientandInpatientappropriations.Nursingfacilityandhomeandcommunitybasedservices(for

elderlyMArecipients)arefundedthroughtheLongTermCareappropriation.

The2011/12ExecutiveBudgetrequests$6.24billioninstateGeneralFundsforthefivemajorMedical

Assistance (MA) appropriations: Outpatient, Inpatient,Capitation, LongTerm Care, and Payment to

theFederalGovernmentfortheMedicareDrugProgram.Thisrepresentsa$2.13billionincreaseover

2010/11,mostofwhichcanbeattributedtotheexpirationoftheARRAFMAPafterJune30,2011.The

tablebelowshowsthe2011/12GeneralFundsrequestedforeachoftheseMAlineitemappropriations

andcomparestherespectivestatefundincreaseswiththeamountoffederalMedicaidreimbursements

earnedundertheARRAFMAPin2010/11.

DPWMedicalAssistanceAppropriations

(DollarsinMillions)

StateGeneralFunds ARRA

2011/12 Changefrom FMAP

LineItemAppropriation Budget 2010/11 2010/11

Outpatient $694.8 $233.7 $204.9

Inpatient $363.7 $113.9 $106.1

Capitation $3,443.9 $965.4 $795.5

LongTermCare* $1,260.4 $546.5 $363.0

SUBTOTAL $5,762.6 $1,859.5 $1,469.4

MedicareDrugPayment $481.1 $271.1

MATOTAL $6,243.7 $2,130.6 $1,469.4

*The2011/12appropriationisimpactedbytheTobaccoSettlementinitiative.

The$2.1billionstateGeneralFundincreaseforMAreflectsthecombinedimpactofthreeelements:

the

budgetary

factors

described

above

which

largely

represent

a

funding

shift

for

existing

expenditures($1.97billion);thecostdriversthatincreaseMAprogramexpenditures($388million);and

the proposed cost containment measures that reduce the need for additional state funds ($245

million).Eachoftheseisaddressedbelow.

Budgetary Factors.The followingaccount for$1.97billion(ornearly93percent)of thestatefunds

increaseforMA:

$1.469 billion replaces the additional federal Medicaid reimbursements earned in 2010/11undertheARRAFMAPs;

$250millionisduetothelossofonetimeclawbacksavingsrealizedin2010/11; $152millionreflectstheproposedswapofGeneralFundstoreplaceTobaccoSettlementFunds

previouslyusedtohelppayforMALongTermCare;and

$100millionreplacesprioryearfederalfundsusedin2010/11forCapitation.


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Nursing home rateswouldbe cut 2 percent through the implementationofarevised budgetadjustment factor for 2011/12. This requires an amendment to the Public Welfare Code to

extendthebudgetadjustmentfactorwhichsunsetsafterJune30,2011.

Behavioralhealthreinvestmentfundskeptbycountieswouldbecappedat4percent. The nursing facility audit program would be expanded to recover excess payments made to

nursinghomes.

Feeforserviceaudits,claimsreview,andrecoveryeffortswouldbeexpanded.ProposedMACostContainment

(dollarsinmillions)

State

Savings

MABenefits/Services

Reduceoptionalpharmacyanddentalbenefits;increasepriorauthorizationforcertainprescriptiondrugs

$55.9

Utilizeevidencebasedbehavioralhealthservices (relatedto

residentialtreatmentfacilities)forchildrenandyouth$10.0

Changecommunitybasedwaiverservicesforseniors $18.2

MAProviderPayments:

Reducestheamountofhospitalsupplementalpayments $86.7

ReducemanagedcarePayforPerformancepayments

(reducesphysicalhealthP4PandeliminatesskillednursingP4P)$20.9

Nomidyearrateadjustmentforbehavioralhealth

managedcare$11.5

Reducenursinghomesrates2% $22.9

OtherMAInitiatives

Capcountyuseofbehavioralhealthreinvestmentfunds $11.0

Expandnursingfacilityrecoveryauditprogram $5.4

Expandprovideraudits,claimsreviewandrecoveryefforts

infeeforservicesystem$3.3

TotalMACostContainment $245.7

In addition to these MA measures, Gov. Corbetts budget proposal recommends elimination of the

followinghospitalpaymentswhicharefundedthroughseparatelineitemappropriations:

TraumaCenterpaymentsmadetoPennsylvaniasaccreditedtraumacenters,improvingaccesstotraumacareforthemostcriticallyinjuredpatients;

CriticalAccessHospitalpaymentsmadetohospitalsthatmeetMedicare'sdefinitionfor"criticalaccess"hospitals,assuringaccesstocareinunderservedareasofPennsylvania;

HospitalBasedBurnCenterpaymentsmadetocertifiedburncenters;and


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Obstetric and Neonatal Service payments made to qualifying hospitals that provide obstetricand neonatal services to MA recipients. Rural hospitals receive 15 percent of funds and

urban/nonruralhospitalsreceive85percentoffunds.

TheExecutiveBudgetalsoproposestoterminatemedicalschoolfundingbyeliminatingthefollowing

appropriations:

Academic Medical Centers, which funds the medical schools at Temple, Penn State (HersheyMedicalCenter),andUniversityofPittsburgh.

Physician Practice Plans, which funds the medical schools at Drexel, Thomas Jefferson, andUniversityofPennsylvania.

DisabilityPrograms

Gov. Corbetts proposed 2011/12 budget requests a total of $2.3 billion in state General Funds for

programs

that

serve

individuals

with

intellectual

disabilities

or

ID

(previously

referred

to

as

mental

retardation),personswithmentalhealthdisorders,and individualswithseverephysicaldisabilities.

This isa$284million increase instatefunds;however,mostofthis isrelatedtotheexpirationofthe

ARRAFMAP,whichreducedtheneedforstatefundsby$260millionin2010/11.Thetablebelowshows

the2011/12GeneralFundsrequestedforeachofthedisabilitylineitemappropriationsandcompares

therespectivestatefundincreaseswiththeamountoffederalMedicaidreimbursementsearnedunder

theARRAFMAPin2010/11.

DPWIntellectualDisabilityAppropriations

(DollarsinMillions)

StateGeneralFunds ARRA

Program

Area

/

2011/12 Change

from

FMAPLineItemAppropriation Budget 2010/11 2010/11

IntellectualDisabilities(ID) $1,278.7 $245.1 $217.5

ID StateCenters 107.4 25.7 27.5

ID IntermediateCareFacilities 145.3 34.8 33.1

ID CommunityBaseProgram 166.5 10.6 1.9

ID CommunityWaiverProgram 846.0 173.6 153.2

AutismInterventionandServices 13.5 0.4 1.8

MentalHealth $769.9 $21.3 $0.0

MentalHealthServices 717.7 22.3

BehavioralHealthServices 52.2 1.0

PhysicalDisabilities $239.1 $17.3 $42.8ServicestoPersonswithDisabilities 135.7 20.0 28.6

AttendantCare 103.5 2.7 14.2

TOTAL DISABILITYPROGRAMS $2,287.7 $283.6 $260.2

In response to litigation regarding the inappropriate and unnecessary institutionalization of

Pennsylvanians,theproposedbudgetincludesadditionalstatefundingtomoveindividualsfromthe


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state centers and state hospitals and to place them in the community. Specifically, the 2011/12

proposed budget requests a total of $8.6 million in state funds for additional community services as

follows:

$4.95millionintheMentalHealthServicesappropriationtoprovidecommunityservicesfor90individualscurrentlyresidinginstatehospitalsinresponsetotheFrederickL.v.Departmentof

PublicWelfarelawsuitsettlementagreement.

$2.45 million in the ID Community Waiver Program appropriation to provide communityservicesto35personswithdualdiagnosisofmentalillnessandintellectualdisabilitieswhoare

currentlyresidinginstatehospitalsinresponsetotheJimmiev.DepartmentofPublicWelfare

lawsuit.

$1.2millionintheIDCommunityWaiverProgramappropriationtoprovidecommunityservicesfor50individualwithintellectualdisabilitiescurrentlyresidinginstatecentersinresponseto

the

Benjamin

v.

Department

of

Public

Welfare

lawsuit

settlement

agreement.

Theproposedbudgethasnofundingtoreducethecountywaitinglistforindividualswithintellectual

disabilitieswho need community services. Nor does thebudget include funding to provideadditional

communityservicestoindividualswithphysicaldisabilities.

Thecostcontainment initiatives inDPWsbudget includechangestocommunityservicesfordisabled

individuals,whichareexpectedtosavethestate$68.8millionin2011/12asfollows:

$38millioninIDCommunityWaiverProgramsbyrevisingservicedefinitions($11million)andlimitingstatereimbursementtogrouphomeprovidersforfederally ineligibleroomandboard

costs($27million).

$17.2million inServices toPersonswith Disabilitiesthroughavarietyofunspecifiedreformsthat include improved service coordination, revised reimbursement rates and reporting

requirements,andexpandedconsumerdirectedcare.

$13.6millioninAttendantCarethroughavarietyofunspecifiedreformsthatincludeimprovedservice coordination, revised reimbursement rates and reporting requirements, expanded

consumerdirectedcare,andincreasedfederalfunds.

Additionally,Gov.Corbettsbudgetproposestoprivatizetheoperationoftheforensicpsychiatricunits

at Torrance and Norristown state hospitals, generating estimated net savings of $3 million in the

Mental Health Services appropriation. The forensic units provide psychiatric treatment and/or

psychiatric evaluation to persons involved with the countybased judicial/corrections systems.

Approximately 400 state jobs would be eliminated under the privatization proposal, but DPW

anticipatesthatmostofthepositionswouldbepickedupundertheprivatecontract.


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IncomeMaintenance

Under the program area of Income Maintenance, DPW operates a variety of programs designed to

provide temporary support to families in transition from government dependency to economic self

sufficiency.Supportmayincludeeducation,jobtrainingandplacementassistance,transportation,other

supportservicesandcashassistance.

Gov.Corbetts2011/12proposedbudgetreducesstateGeneralFundexpendituresintheprogramarea

of Income Maintenance by nearly $54.7 million or seven percent. This decrease largely represents

anticipatedsavings instateGeneralFundsresultingfroman initiative torightsizeemployment and

trainingcontracts.ThisinitiativespanstheCountyAssistanceOffices,NewDirections,andCashGrants

appropriations. Under the initiative, part of the state fund reduction will be replaced with federal

TemporaryAssistanceforNeedyFamilies(TANF)blockgrantfunds.Additionaldetailsonthis initiative

areforthcoming.

The proposed budget assumes increased caseloads in the areas of cash assistance and state

supplemental grants. The Cash Grants appropriation funds monthly cash payments and supportive

servicesallowances (transportation, clothing,etc.) torecipients ofTANF, General Assistance (GA) and

StateBlindPension(SBP).TheSupplementalGrantsappropriationprovidesstatefundingtosupplement

federal benefits paid to aged, blind, and disabled recipients under the Supplemental Security Income

program.TheSocialSecurityAdministration(SSA)establishedthefederalSupplementalSecurityIncome

(SSI) Program in 1974. States were given the option of providing supplementary cash payments to

augmentfederalbenefits.

OtherHumanServices

Under the program area of Human Services and Support, the Department of Public Welfare (DPW)

operatesavarietyofprogramsdesignedtoprovidesupportiveservicestopeoplewhiletheyovercome

anadversebehaviororcircumstancethathasaffectedtheirlives.

Under the Youth Development Institutions and Forestry Camps appropriation, DPW oversees

residentialprogramsforcommitteddelinquentswhoareages12to18.Thecourtmaysentenceyouth

toeithertheYouthDevelopmentCenterandYouthForestryCamp(YDC/YFC)systemoraprivatefacility.

The YDC/YFC system is presently comprised of seven facilities located throughout the state. The

Commonwealth operates six facilities and one facility is operated by a private agency under contract

with DPW. Gov. Corbetts 2011/12 budget proposal assumes $6 million in state savings from the

consolidationofunitsattheNewCastleYDCfacility.

As

required

in

the

County

Code

and

the

Public

Welfare

Code,

the

County

Child

Welfare

appropriation

undertheDepartmentofPublicWelfare(DPW)providesstateandfederalfundstosupportcounty

administered social services programs for children and youth in each of the Commonwealths 67

counties.Childwelfareprogramsarefundedthroughacombinationofstate,federalandcountydollars.

ThemajorityoffundingisfromstateAct148(GeneralFund),federalTitleIVE,andcountyfunds.Based


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onthetypeofservicesdelivered,varying levelsofstatereimbursement(rangingfrom50100%)are

providedtocounties.ThisisoftenreferredtoasacountymatchonstateAct148dollars.

Eachyear,theproposedfundinglevelforchildwelfareservicesisbuiltfromtheNeedsBasedPlanand

Budget (NBB) process. Article VII of the Public Welfare Code establishes child welfare services as an

entitlementservicethatisthejointresponsibilityofDPWandcountygovernment.DPWadministersthe

funds and regulates the services, while the counties provide the services to fam

house democrats analysis of fy 2011-12 corbett budget

Documents